Stock markets start November on a positive note with the S&P 500, Nasdaq, and Dow all at new record highs.

It’s hard to ignore the huge moves made by Tesla’s stock which was up over +8% yesterday after gaining +44% in October.

Earnings summary

Harley-Davidson is also starting the week with a big jump, climbing almost +8% thanks largely to the removal of EU import tariffs that were around 56%. The tariff removal stems from a deal cut between the U.S. and EU this past weekend that also partially removes U.S. tariffs on steel and aluminum imports from the EU. That in turn should help ease some cost pressures for some U.S. manufacturers, especially car makers.

More than +80% of S&P 500 companies that have reported so far have topped Wall Street expectations.

Today is another busy one for earnings with Pfizer one of the top highlights. The company’s Q3 revenue is expected to more than double from last year thanks in large part to sales of its Covid-19 vaccine. With the recent approval of its Covid vaccine for children ages 5-11, investors are anxious to hear the company’s outlook.

Another one to watch today is Zillow which has seen its stock tank more than -50% since its peak back in February. A report released yesterday showed that a majority of the homes in the company’s $1.17 billion portfolio might be underwater, the company is also having a tough time sourcing contractors and materials need to complete the cycle on the flips, something that could obviously weigh on earnings.

Economic front

The ISM Manufacturing report yesterday showed price increases continued in October with the same culprits being blamed – extreme supply chain dislocations and lack of workers. Still, manufacturing activity has expanded for 17 straight months now with new orders continuing to expand as well. That strong demand has been reflected in Q3 corporate earnings that have overall defied concerns that inflationary pressures and supply chain challenges would lead to disappointing results.

On the economic front, the U.S. Federal Reserve begins its two-day policy meeting today which will wrap up tomorrow with a press conference from Fed Chair Jerome Powell.

Wall Street expects the Fed to hold rates steady and to announce it will begin reducing its monthly asset purchases. Bulls don’t seem overly concerned, believing that supply chain dislocations and labor market challenges will begin to ease in the first half of next year, bringing down inflation pressures that could otherwise lead the Fed to implement rate hikes faster and higher than expected.

Investors today are also interested in election day results where Governor races in Virginia and New Jersey could provide a preview of how voters are leaning ahead of the 2022 mid-term Congressional elections. Republicans think they have a good chance of winning back the Senate next November as well as narrowing the gap in the House.